Bitwise Strategy Director: Approval of BlackRock Bitcoin Spot ETF Options Will Trigger Explosive Rise in Bitcoin

Bitwise Alpha's strategy director Jeff Park posted on the X platform, stating that "SEC approval of BlackRock Bitcoin spot ETF options trading" will trigger an explosive rise in Bitcoin. Jeff Park believes that the market is about to witness the most incredible volatility in financial history, which should be more fully explained. The reasons include several features of Bitcoin, the nature of regulated options markets, and their powerful combination. He believes that "SEC approval of BlackRock Bitcoin spot ETF options trading" marks potentially the greatest progress for cryptocurrency markets. For the first time, Bitcoin's nominal value will achieve "partial banking" through ETF options. Although limited non-custodial supply is its biggest advantage, it also acts as a drag limiting synthetic leverage creation capabilities. Now for the first time ever, bitcoin will have a regulated market with Commodity Futures Trading Commission protecting clearing members from counterparty risk exposure. This means that bitcoin’s synthetic notional exposure can grow exponentially.

In addition to this, bitcoin has unique volatility characteristics; when spot prices rise so does volatility meaning delta increases at a faster rate. When short gamma traders hedge (during gamma squeezes), there can be an explosive recursion effect with bitcoin where short sellers are forced to continue buying at higher prices leading to even greater price rises (more buying leads to more rising). Negative vanna gamma squeeze could send bitcoin prices skyrocketing like a rocket.

In conclusion, Bitcoin ETF option market represents finance world’s first glimpse into leveraged regulation on truly supply-constrained perpetual commodities . Things might get crazy enough for regulated markets being forced shut down but what makes bitcoins extraordinary is there always exists parallel decentralized marketplace which cannot be shut down unlike stocks.